President Bola Tinubu has asked the Senate to approve a fresh external borrowing of $7.707 billion, equivalent to N10.79 trillion, to finance part of the Federal Government’s 2026 budget deficit.
In a letter dated October 26, 2026, read during plenary on Wednesday by Senate President Godswill Akpabio, Tinubu said the proposed loan would form part of the financing for projects and programmes captured in the 2026 Appropriation Act.
The request is based on an exchange rate of N1,400 to the dollar and represents the external component of the Federal Government’s borrowing plan.
According to the President, N18.4 trillion of the proposed new borrowing would be sourced domestically, while N10.79 trillion would come from external sources.
The President also sought the Senate’s authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office (DMO), to take necessary steps to implement the borrowing plan.
Akpabio said the fresh request superseded an earlier proposal seeking approval for $20.52 billion and €1.045 billion, which Tinubu had submitted to the National Assembly on October 27.
He described the new communication as more explicit, providing greater clarity on the proposed financing arrangements and allowing the government to explore different sources of external funding.
In the letter, Tinubu said the external funds would be raised through a combination of financing options, including Eurobond issuance, concessional and commercial facilities from multilateral and bilateral institutions, International Monetary Fund facilities, and bridge financing arrangements.
He said the government would place greater emphasis on Eurobond issuance because of the relatively shorter time required to raise funds and the possibility of securing substantial financing at competitive costs.
“All the options will be pursued simultaneously, considering the costs and related benefits to the country and the time required to access the funds.
“In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude. Additionally, a large amount can be raised through Eurobonds at a relatively lower cost,” the President said.
Tinubu added that the final terms and conditions of the proposed borrowing would depend on prevailing market conditions at the time of pricing.
He assured the Senate that the Ministry of Finance and the DMO would work together to secure the most favourable terms for the country.
The President said the funds would support the implementation of projects and programmes in critical sectors, including defence and security, transportation, agriculture, power, education, and healthcare.
According to him, the proposed external borrowing is intended to consolidate and strengthen the macroeconomic reforms and gains recorded by his administration.
“The new external borrowings are required to implement the items, programmes, and projects in the 2026 Appropriation Act, which are designed to consolidate and strengthen the macroeconomic reforms and gains recorded by this administration in the past few years,” he said.
Tinubu further argued that the external borrowing would help strengthen Nigeria’s foreign reserves and support exchange rate stability.
He explained that the foreign currency proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby contributing to the country’s external reserves.
“It is also important to add that the process will increase the accretion to the external reserves, since the funds will be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby supporting the naira exchange rate,” he said.
The President anchored the request on Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which provide for legislative approval of external borrowing and authorise the National Assembly to approve the terms and conditions of such facilities.
Explaining the revised request, Akpabio said the new letter effectively cancelled the earlier proposal for $20.52 billion and €1.045 billion.
“I believe this letter effectively cancels the earlier request that was sent for $20-something billion. But this is much more explicit,” he said.
The Senate President added that the revised proposal would enable the Federal Government to explore different financing sources and negotiate favourable terms.
He subsequently referred the request to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wammakko (APC, Sokoto North), for further legislative consideration.
The committee is expected to examine the proposed borrowing arrangements and report back to the Senate.
